EGN NEWS DESK
“This landmark deal proves that open, rules-based commerce can ship for our prosperity and financial safety,” European Commission President Ursula von der Leyen mentioned. The bilateral buying and selling relationship is price greater than €100 billion a yr — four-fifths within the type of items and one-fifth in companies.
Echoing the apprehension round Trump’s tariff concepts, the German automotive foyer VDA mentioned “the conclusion of a modernization of the settlement can be an vital political sign —particularly in instances of accelerating protectionism.” Cars and spare elements are one of many largest export classes from Europe to Mexico. In 2022, Germany alone bought €2.5 billion price of those merchandise to Mexican importers.
EU automotive exporters will likely be over their Mexican counterparts on this deal, as a result of they may qualify for sure decrease tariffs in Mexico below much less strict guidelines than the opposite means round.
Win for EU meals exporters
The EU govt additionally trumpeted export opportunites for agri-food exporters, with the deal eradicating tariffs that had been as excessive as 100% on exports of merchandise corresponding to cheese, pork, pasta, apples, jams, and marmalades — in addition to chocolate and wine.
Protection of geographical indications — a type of trademark model for premium produce — will likely be expanded to 568 merchandise. And export procedures will likely be simplified, the Commission mentioned, outlining particulars of the settlement.
The unique deal between the 2 sides dates again to 2000, which means it was due for a revamp. The EU additionally redid its settlement with Chile in an analogous method two years in the past. A senior EU official admitted the newest deal was much less formidable than at a earlier stage within the talks in 2020.
